Option Swing Traders Bank Profits in $JPM

Swing trading is all about momentum in the market drilled down into your stock selection.  Option traders take advantage of these swings when they see a great opportunity like JP Morgan.  On May 22nd during our TNT Webinar we discussed the opportunity in $JPM as the stock was supporting just above the 100 day simple moving average.  This gave a natural stop price if it were to reverse and test the 100 day SMA.  Option traders jumped into the May 25,2018 112 calls for about $1.00.

The stock proceeded to run up to a high of $114.28 where most of our subscribers rolled their options to lock in profits.  The options had run for about $2 from the opening (depending when they got in) and with at least a 60 delta the calls the intrinsic value was $2.28 at the high.  Once traders saw momentum start to fade they either rolled or exited their trade.

Some traders ( on this side of the trade) locked in between 50-77% on this option swing trade.  They sold their May 25th expiring options for between $1.5 to $1.77 after momentum faded.  You can see this move on the chart below listed as #1.

The next day the there was a follow through to the downside 100 day simple moving average that subscribers jumped in on the break.  For this, traders used the $113 puts with the same May 25th expiration for about $1.00.  The stock dropped to a low of $111.12 with an intrinsic value on our those puts of $1.88.  Put traders exited the trade for 40-70% profit that day.  They would have exited the stock as it pulled back between $1.4-1.7.  Some traders held for the longer term and scored but had to hold as the stock broke back above the 100 day SMA.  This trade can be seen below from the #2 bearish trade.

So for one pick some subscribers got to play in both directions and make about 50%( 1 trade) to 90%-147% (combining both trade result ranges)!

Some of the results from our subscribers: